Question

A firm produces five lamps with marginal costs of $12, $13, $30, $42, and $55, respectively and sells each lamp for $60. What
0 0
Add a comment Improve this question Transcribed image text
Answer #0

Answer

Producer surplus is the benefit or surplus producer receives by selling at a price more than what they are willing to sell. Minimum price at which they are willing to sell is the marginal cost(MC) of producing that quantity.

So, Producer surplus from 1st unit is price - MC of 1st unit = 60 - 12 = 48

Producer surplus from 2nd unit is price - MC of 2nd unit = 60 - 13 = 47

Producer surplus from 3rd unit is price - MC of 3rd unit = 60 - 30 = 30

Producer surplus from 4th unit is price - MC of 4th unit = 60 - 42 = 18

Producer surplus from 5th unit is price - MC of 5th unit = 60 - 55 = 5

Hence Total producer surplus = 48 + 47 + 30 + 18 + 5 = 148

Hence, Total producer surplus = $148.

Add a comment
Know the answer?
Add Answer to:
A firm produces five lamps with marginal costs of $12, $13, $30, $42, and $55, respectively...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13...

    Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Each lamp must spend time on a special machine. The firm owns four machines that together provide 18,000 hours of machine time per year. The classic lamp requires 0.20 hours of machine time, the fancy lamp requires 0.50 hours of machine time. What is the contribution margin per hour of machine time for a classic lamp? a.$104 b.$16 c.$13 d.$26 e.$65

  • Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal...

    Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal Revanue Demand 0 30 40 50 60 g) (3 points) If this firm is price discriminating, will consumer surplus be higher or lower than when the firm is not price discriminating? h) (3 points) If this firm is price discriminating, will producer surplus be higher or lower than when the firm is not price discriminating? g) (3 points) If this firm is price discriminating,...

  • Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles....

    Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. Average Total Cost (5) ATCD ATCA ATCE Quantity of Automobiles per day Refer to Figure 13-9. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory? a. ATCA b.ATCB ос. Атес d. ATCD Figure 13-9 The figure below depicts average total cost functions for a firm that produces automobiles. Average 1 Total Cost (5) Quantity...

  • above figure, when the firm produces output corresponding to point c the firm's marginal co A)...

    above figure, when the firm produces output corresponding to point c the firm's marginal co A) equals its marginal revenue B) exceeds its marginal revenue C) equals its average revenue. D) is less than its marginal revenue. E) more information would be needed to answer the question 25) At a firm's break-even point, its A) marginal revenue exceeds its marginal cost. 13) marginal revenue equals its average variable cost. C) total revenue equals its total opportunity cost. D) also its...

  • Consider the perfectly competitive market for halogen ceiling lamps. The following graph shows the marginal cost...

    Consider the perfectly competitive market for halogen ceiling lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. COSTS (Dollars per tamp) 100 MC 90 80 70 60 50 ATC AVC 40 30 20 10 0 5 10 15 20 25 30 35 40 45 50 QUANTITY OF OUTPUT (Thousands of lamps) For each price in the following table, use the graph to determine...

  • Suppose that a price-taker firm has a marginal cost function given by: MC 30+0.5q. The firm...

    Suppose that a price-taker firm has a marginal cost function given by: MC 30+0.5q. The firm could join a cartel in its industry and agree to a quota of 5 units. The collusion drives the price of the good from $35.91 to $70.00. Calculate the producer surplus of this firm when they produce the quota. (Do not enter a "$" sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check

  • Califormia State University Long Beach est Form B Table 2: A monopoly's costs Price (5) 35...

    Califormia State University Long Beach est Form B Table 2: A monopoly's costs Price (5) 35 30 25 20 | Quantity | Total cost (S) 10 12 16 Te 30 11. Refer to Table 2. What is the firm's total revenue if it sells two units? A) $60 B) $48 C) 530 D) S25 12. Refer to Table 2. What is the firm's marginal revenue if it sells two units? A) $60 B) $48 C) S30 D) $25 13. Refer...

  • 1. Consider a three firm (n = 3) Cournot oligopoly. The market inverse demand function is p (Q) = 24 Q. Firm 1 has constant average and marginal costs of $12 per unit, while firms 2 and 3 have constan...

    1. Consider a three firm (n = 3) Cournot oligopoly. The market inverse demand function is p (Q) = 24 Q. Firm 1 has constant average and marginal costs of $12 per unit, while firms 2 and 3 have constant average and marginal costs of $15 per unit. a)Verify that the following are Nash equilibrium quantities for this market: q1 = 9 / 2 and q2 = q3 = 3 / 2 . b)How much profit does each firm earn...

  • Cournot Problem. Consider a Cournot oligopoly with two identical firms. These firms cach have constant marginal...

    Cournot Problem. Consider a Cournot oligopoly with two identical firms. These firms cach have constant marginal costs of $10. The market for these firms, product has demand Q 100-P 27. Refer to Cournot Problem. Each firm will producc. a. 22.5 units b. 30 units. С. 45 units. d. 90 units. ANS: B PTS: 1 28. Refer to Cournot Problem. Total industry output will be units. b. 45 units. С. 60 units. d. 90 units. ANS: C PTS: 1 29. Refer...

  • 6. Deriving the short-run supply curve Consider the competitive market for halogen lamps. The following graph...

    6. Deriving the short-run supply curve Consider the competitive market for halogen lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. COSTS (Dollars) AVC МСП OHH 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of lamps) On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT